One thing that can cause a shift in the demand curve is a change in one of the determinants of demand.
The law of demand can be shown as Pat wants to buy more candy bars at $1 than at $2
<h3>What does the law of demand say?</h3><h3 />
The law of demand posits that people will demand more of a good when the price is lower as opposed to when it is higher. This is why Pat will want to buy more candy bars when the price is lower at $1 as opposed to $2.
The demand curve will shift when there is a change in one of the determinant of demand such as the income of people and the price of substitutes.
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The lesson of sunk costs is to forget about the money that's irretrievably gone and instead to focus on the marginal costs and benefits of future options. A sunk cost is a cost that happened during the manufacturing of something else and there is no way to recover that money back if the item or service fails. These costs will happen no matter the decision or outcome of a situation so most companies do not factor in sunk costs.
In the case of snack corp, when the price they sell their product at is <u>below</u> the average cost of production, profits are <u>negative</u> due to<u> </u><u>negative</u> average profit.
Average profit is defined as total profit divided by performance, or total profit for each period divided by a number of periods. The formula for calculating average profit is Average Revenue - Average Cost = Average Profit.
But in general, small businesses have healthy profit margins between 7% and 10%. However, be aware that certain companies may have lower profit margins. B. A retail or food company. This is because overhead costs tend to be high. Average profit is calculated by dividing the total profit for the year by the number of years of profit.
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Answer:
Explanation:
Let the appraisal value be p.
.90 p = 220000
p = 220000 / .9
= 2,44,444
cash down payment = .1 x 244444
= 24444
Price of the house = 1.05 x 244444 ( 5% more than appraisal value )
= 256666.
Answer:
a. Assets were understated by $5,000 and pretax income was understated by $5,000.
Explanation:
Inventory are part of Current Assets in the Balance Sheet. This means that when they are understated, the Assets are also understated. Also understated inventory means that cost of sales are overstated in the Income Statement and consequently, Gross Profit and Pre-tax Income are understated.
